The Relationship Between ROA, ROE, ROCE and EPS Ratios with Break-up Values of Shares of Karachi-Pakistan Fuel and Energy Listed Companies
Journal of Finance and Accounting
Volume 5, Issue 3, May 2017, Pages: 115-122
Received: Jun. 3, 2014; Accepted: Jun. 13, 2014; Published: May 27, 2017
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Authors
Muhammad Aamir Ali, School of Accounting and Finance, University of Central Punjab, Lahore, Pakistan
Usama Kalim, Deparment of Management Sciences, Comsats Institute of Information Technology, Islamabad, Pakistan
Hasnain Raza, School of Accounting and Finance, University of Central Punjab, Lahore, Pakistan
Hafiz Amir Ali, School of Accounting and Finance, University of Central Punjab, Lahore, Pakistan
Mohsin Rehman, School of Accounting and Finance, University of Central Punjab, Lahore, Pakistan
Muhammad Ismat Ullah, School of Accounting and Finance, University of Central Punjab, Lahore, Pakistan
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Abstract
The purpose of this study is to examine the relationship among ROA, ROE, ROCE and EPS ratios together and separately with Break-up Values of Shares Karachi-Pakistan fuel and energy listed companies during the period (2006-2011). Because the fundamental view says that the market prices of shares follow the intrinsic values of shares. The empirical results suggest that collectively these ratios except ROE show significant positive relationship with break-up values of shares and separately ROA, ROCE and EPS show significant positive relationship with break-up values of shares whereas ROE shows insignificant positive relationship with break-up values of shares separately.
Keywords
ROA, ROE, ROCE and EPS
To cite this article
Muhammad Aamir Ali, Usama Kalim, Hasnain Raza, Hafiz Amir Ali, Mohsin Rehman, Muhammad Ismat Ullah, The Relationship Between ROA, ROE, ROCE and EPS Ratios with Break-up Values of Shares of Karachi-Pakistan Fuel and Energy Listed Companies, Journal of Finance and Accounting. Vol. 5, No. 3, 2017, pp. 115-122. doi: 10.11648/j.jfa.20170503.15
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